Letter Requesting an Increased Credit Line

Letter Requesting an Increased Credit Line

Letters Kate

Many businesses work based on credit. When customers or clients place an order on credit, they buy items and products from the seller, and the seller allows them to pay him later. The credit limit is specified by the seller of the product. This process helps the trader because he knows how to schedule the payments to pay off the loan. Sometimes, it becomes impossible for the trader to buy products from the seller with a specific credit limit. In that situation, he must write a request letter to the seller asking him to increase the credit line.

Importance of writing the request letter to ask for an increase in credit limit:

Whenever you want to get an increased credit limit, you are required to request a written formal letter. This letter proves that you have written a request letter, which is why you need the increase. Through this letter, you will be better positioned to talk to the recipient and clarify your position. You can tell the recipient that you have always been so punctual when making the payment. This will let the recipient know about certain aspects he might have ignored.

Writing tips:

Here are a few tips on how to write a letter that will persuade the reader to accept your request.

Give reason:

When you ask the recipient to increase the credit limit, there must be some reason behind it. It is important to mention the reason. The bank will consider increasing a person’s credit limit if his record of returning the money is good and he has a genuine reason to ask for it.

Write objectively:

Remember that you are writing to the bank manager, who is not your friend or any relative. Therefore, your letter should be formal. Formal letters are usually more objective and communicate all the information so that it reaches the intended person, giving its true meaning with minimum length.

Stay to the point:

Some people believe in writing the background of the request they will make. They don’t directly get to the point. This act sometimes irritates the recipient. Therefore, you should come straight to the point when you are requesting an increase in the credit limit.

Show your positive side:

There is a chance that the bank did not consider your good credit history. Tell them about it, and you can score some points.

Sample letter:

Date:

Mention the name of the bank manager

Mention the name of the bank

Subject: Request to increase the credit line

I have used your bank’s credit card for over 3 years. I have a good record of paying all the bills on time. Due to this, the bank has declared my bank account as a most punctual account. Based on this record, I would like to request that you increase my credit line.

I am starting a new job at ABC Company, which requires me to travel more than usual. I know that my company will sponsor my travel expenses, but there are so many expenses that I will have to cover. I apprehend that I would fall short of money if I used a credit card for this purpose. Therefore, I am in dire need of getting an increase in my credit line. I am attaching a list of all my expenses to this letter.

You can check my record to see that I use my credit card extensively while travelling. My credit limit is often exhausted, and I don’t feel comfortable travelling with cash, as it is unsafe.

I have submitted all the documents you need to determine whether I deserve an increased credit line. I would be highly obliged if you accepted and processed my request as soon as possible. 

Regards

Sincerely,

Name of the lender.


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